Markets are oozing with excitement this week as Bitcoin, Ethereum, and other cryptocurrencies finally start seeing an upward price movement. Of course, it is hard to predict if this change is sustainable, but it definitely serves as a good sign amid a crypto winter that has gotten too cold for anyone’s liking.
Is Crypto Winter Over?
Just like any other publicly accessible trading market, the crypto space is also subjected to price volatility and inflow/outflow of capital. This is not the first so-called winter that came upon crypto, and it is definitely not its last. The truth is, we need to get accustomed to volatility, as it is an absolutely normal state of any market. But is the crypto winter over?
According to David Marcus of Paypal, the crypto winter is to remain all the way until the end of 2023. Still, just like with any projections by any thought leader, this type of information must always be taken with a grain of salt.
Right after the early January news feed received the standard amount of negative crypto price projections, the markets turned upward. At the time of writing, BTC price sits confidently above $22,500, whilst Ethereum hovers over $1,600. This uptick is giving the traders a breath of fresh air and provides a much-needed break from the cold days. Whether it will be a sustainable break, is down to industry players, as it is safe to say, that the current beating was pretty much self-inflicted. Yes, we are looking at you FTX dstvportal.
Ethereum Price Prediction
Taking into account that Ethereum is the leading L2 blockchain on the market, we can safely assume that whatever happens to the price of Ethereum, it will naturally make the market follow suit.
As a blockchain, Ethereum has another The Merge like event in store for us, planned to take place in March 2023. It will be a network update called Shanghai and one of its main goals is to allow those who solo stake, to withdraw their ETH from validator node contracts. Now, this is big news and will set Ethereum to a new level of functionality and market grade best mutual funds.
Once the update is live, people will be able to withdraw their staked ETH, but at the same time, the added functionality is expected to attract even more stakes, as there will be no more caveats to staking.
Increased demand for staking means increased demand for ETH. This means that the price of ETH will most likely go up and maybe even return to the $4,000 levels it once showed its capacity of.
As per above, this traction should push the price of BTC and other cryptos up, exposing the true potential of well-designed blockchains sccbuzz.
Should You Buy in Early?
We try to stay away from giving investment advice, so please do your own research before you expose yourself to crypto. All we can say is that once you are ready, it pays to be on a top-tier crypto exchange like Gate.io, to start your crypto investment.
With the sudden fall of FTX, it can be argued that crypto exchanges are hard to judge, and in some cases, you may be right. Still, few platforms go the extra mile to showcase the safety of users’ funds. One such gauge is Proof of Reserves, which shows whether the crypto platform’s management uses the funds of their clients, or keeps them safe and away from trading. The latter is something that FTX totally failed to achieve, and hence it is only of benefit to be with a transparent platform.
What Determines The Crypto Price?
Crypto price depends on supply and demand. The higher the demand, the greater the price of any crypto token will be. In turn, demand is governed by the sentiment of the market, good and bad news, as well as updates or developments of blockchains or projects. This is why it is important to know what is happening in the crypto world, as it often hints toward the crypto price projection. For latest crypto prices, see https://www.gate.io/price
The crypto market is a hard one to predict but given how much good blockchain technology brings, the future of crypto is definitely a bright one. Utility is one of the key elements that translate into value, and blockchain has plenty of it. This is why it is important to always seek out what utility a given project or crypto adds to the space, and ignore the market predictions that bombard us on a daily basis.
We are lucky to witness the early days of crypto, regardless of whether it seems that the market is fully developed. There is still a long way to go and so much to discover. That’s why, whatever the price of ETH or BTC is right now, the long-term prospects of blockchain are positively overwhelming.